Details of Varishtha Pension Bima Yojana (VPBY)
Q. Which of the following statements is/are correct about Varishtha Pension Bima Yojana (VPBY) ?
1. It will benefit the vulnerable section of society with limited resources
2. The scheme will be administered by the LIC- Published on 29 Oct 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Both
Some key features of the scheme are:
- Available to citizens aged 60 years and above.
- Pension would be on immediate annuity basis in monthly, quarterly, half-yearly or annual mode, varying, respectively, between Rs. 500 to 5000 (monthly), Rs. 1500 to 15,000 (quarterly), Rs. 3000 to Rs. 30,000 (half-yearly) and from Rs. 6,000 to Rs. 60,000 (annually), depending on the amount subscribed and the option exercised.
- The payout implies an assured return of 9% on monthly payment basis, which amounts to an annualized return of 9.38%.
- Loan (up to 75% of subscribed amount) can be availed after 3 years from the Date of Commencement.
- On death, the full purchase price will be refunded to nominee.
- Exit/surrender would be allowed after 15 years or earlier in special circumstances like critical / terminal illness of self or spouse.
